Dow Jones futures rise; Nvidia Earnings Provides Huge Test With 5 AI Stocks Near Buy Points

Dow Jones futures rose slightly Sunday night, along with S&P 500 futures and Nasdaq futures with all eyes on Nvidia.

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The stock market rally saw the Dow Jones, S&P 500 and Nasdaq reach record highs over the past week, with many stocks rising or showing other buy signals. Stocks paused late in the week, but the Dow Jones closed above 40,000 for the first time on Friday.

Nvidia (NVDA) Dividends are due Wednesday night. The AI ​​chip leader's findings and direction will have a significant impact on other AI plays, far beyond the actual AI companies. So Nvidia's move this week has major implications for the broader market's rise.

Nvidia shares broke into buy territory last week. Artificial intelligence plays Broadcom (Afgo), Microsoft (MSFT), Super micro computer (SMCI) It can be said, Advanced micro devices (AMD) They are all close to purchase points.

Also report next week: PDD Holding (PDD), Palo Alto Networks (Bano), Modine manufacturing (modern), Take care of the brothers (Tulle), summary (Snaps), Decker outdoors (Deck) And Williams Sonoma (WSM).

Pinduoduo and PDD parent Temu are already in the buying range, along with luxury builder Toll Brothers. Modine Manufacturing, Synopsis, Deckers and Williams-Sonoma are located near the purchase points. Palo Alto is making its way to a new base, with Monday night's results relevant to other cybersecurity plays such as Crowd Strike (CRWD).

Nvidia stock is on IBD Leaderboard. AVGO and Nvidia shares are on SwingTrader. Microsoft stock and Synopsys are on IBD's long-term leaders list. Nvidia and PDD stock is on the market Bahraini dinar 50. Nvidia, Broadcom, and SMCI stocks are in the market IBD Big Cap 20.

Dow jones futures today

Dow Jones futures rose 0.1% versus fair value. S&P 500 futures rose 0.2%, and Nasdaq 100 futures rose 0.2%.

The yield on 10-year Treasury bonds fell to 4.41%.

Remember, an overnight move in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.

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Stock Market Rising: Dow Jones Index Above 40,000

The stock market rally got a boost from slowing inflation and other economic data pointing to a slowdown. The major indexes made a big move on Wednesday, then paused late in the week, waiting for Nvidia.

The Dow Jones Industrial Average rose 1.2% in stock market trading last week, ending the week just above the 40,000 level. The S&P 500 rose 1.5%. The Nasdaq Composite Index jumped 2.1%. The small-cap Russell 2000 rose 1.7%. The Dow Jones is on a five-week winning streak while other indexes have been higher over the past four weeks.

Homebuilders and related stocks, various financial companies, medical, energy plays, aerospace, specialty footwear, restaurants and global e-commerce companies are among the many areas showing its strength.

The yield on the 10-year Treasury note fell 8 basis points to 4.42%, although it came in far from its weekly low of 4.32%.

US crude oil futures rose 2.3% to $80.06 per barrel last week.

ETFs

Among the growth ETFs is the iShares Expanded Technology Software Sector ETF (IGV) jumped 3.5%. Microsoft stock is a major component with Palo Alto also in the IGV. VanEck Vectors Semiconductor ETF (Trait) rose by 3.1%. Nvidia stock is the No. 1 stock in SMH, with AMD and Broadcom also as key members. SNPS inventory is present in both SMH and IGV.

SPDR S&P Metals & Mining Fund (XME) rose almost 4% last week. Global X US Infrastructure Development Foundation (ETF)cradle) fell nearly 1%. US Global Jets ETF (Planes) by 1.7%. SPDR S&P Homebuilders ETF (XHB) decreased by 0.3%. Energy Select SPDR ETF (XLE(Up 1.2% and the Healthcare Sector SPDR Fund)Forty-fifth) by 1.9%.

Selected Industrial Sector SPDR Fund (forty-first) decreased by 0.3%. Financial Select SPDR ETF (XLF) by 1.5%.

Reflecting more speculative stocks, the ARK Innovation ETF (Ark) bounced 5.9% last week and the ARK Genomics ETF (Arkj) jumped 6.6%.

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Nvidia profits

The chip giant reports Wednesday night. Analysts expect Nvidia's earnings to rise 412% to $5.58 per share with sales rising 245% to $24.51 billion.

Even if Nvidia beats views and raises guidance again, will that be enough to meet investors' expectations?

NVDA stock rose 2.9% to 924.79 last week. Shares cleared a cup-with-handle buy point at 922.20 on Wednesday, and pulled back to test that entry on Friday.

Other AI stocks

Broadcom stock rose 4.7% to 1,395.29 last week, briefly surpassing a consolidated buy point of 1,438.17, according to Marketsorg. Shares moved above the early entry level of 1,403.98, but fell back below that level on Friday.

AMD stock jumped 8.25% to 164.46 during the week, but faced resistance at the 50-day moving line. Clearing that area decisively could provide a strong entry, but AMD has been lagging versus Nvidia and several other AI players in recent months. Microsoft Azure will reportedly offer cloud computing customers the option to run AMD AI processors. That gave AMD stock a boost on Friday morning, but shares pared their gains.

Microsoft stock advanced 1.3% on the week to 420.21, moving away from its 50-day line and toward a firm buy point at 430.82. Investors can use the move above Thursday's high of 425.24 as an early entry for the Dow Jones giant, in conjunction with the trend line.

Super Micro stock rose 11.2% to 887.89 during the week, just below its 50-day line. Investors can use the critical clearing of this area as early entry into the AI ​​server maker.

Taking new positions in any of these names ahead of Nvidia's earnings would be very risky.

Of course, this is just a sample of the AI ​​operations that could be affected, with everything from chips and software to thermal cooling companies like Modine Manufacturing and utilities like Energy constellation (CEG).

Nvidia's disappointing earnings report could lead to heavy selling in several huge market segments.

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What are you doing now

After the stock market rally reaches record highs, it is taking a break. This allows stocks to form handles or move up on the right side of the rules, displaying relative strength.

The past two weeks have provided a steady system of buying opportunities, which has generally worked. Investors must have significant or significant exposure now.

Be careful about buying AI stocks ahead of Nvidia's earnings. Nvidia's results can have a big impact on the broader market, so be wise about adding exposure overall.

It's a good time to review your portfolio. Are there defaulters that could be dropped to make room for additional or new purchases? Are you too exposed to AI stocks for your liking?

Definitely work on your watch lists. Many stocks are setting up again across a range of sectors.

Read The Big Picture every day to stay on top of market trend and leading stocks and sectors.

Please follow Ed Carson on topics at @edcarson1971 And X/Twitter at @IBD_ECarson For stock market updates and more.

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AI Giant leads 5 stocks near buy points